Which of the Following Is an Example of a Sunk

question 117

Multiple Choice

Which of the following is an example of a sunk cost in a capital budgeting decision regarding the replacement of an existing piece of equipment for a profitable business that pays taxes?

• A) The disposal (salvage) value of the equipment to be replaced.
• B) The original purchase price of the equipment to be replaced.
• C) The additional net working capital requirement.
• D) The operating cost of the new equipment.
• E) Income taxes on the disposal of the equipment to be replaced.

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Definitions:

Logic 0

Represents a low state or off condition in digital electronics or binary systems.

Programmed XIO Instruction

In PLC programming, an "Examine if Open" instruction that checks if a specific condition or input is false.

Bit Status

Refers to the on or off condition of a bit within a digital system, where '0' typically represents off and '1' represents on.

Logic Continuity

The consistent application and flow of logical operations or conditions within a system, ensuring coherent and expected behavior.